Developing a Loan Amortization Calculator and Schedule Generator in C++

In this guide, we'll walk you through the process of creating your very own loan amortization calculator and schedule generator in C++. Are you looking for a user-friendly tool to calculate your loan payments and generate an amortization schedule? Look no further! We've created a comprehensive loan amortization calculator and schedule generator that's both easy to use and understand. With our tool, you can quickly estimate your monthly payments and gain a deeper insight into how your loan will be paid off over time. Whether you're a homeowner or a finance enthusiast, our calculator simplifies the complexities of loan management and empowers you with financial knowledge.

Building a C++ Loan Calculator

Explore our comprehensive guide on how to create a loan amortization calculator in C++. Whether you're a finance enthusiast or need help with your C++ assignment, this resource equips you with the skills to build a practical financial tool from scratch. Additionally, our expert team is here to provide assistance and guidance, ensuring your success in both learning and applying C++ programming concepts to real-world financial applications. Start your journey today and take control of your financial knowledge.

1. Header Inclusions:

```cpp #include < iostream > #include < iomanip > #include < limits > #include < cmath > ``` < /cmath >< /limits >< /iomanip >< /iostream >

• This block includes necessary C++ libraries for input/output, formatting, numeric limits, and mathematical functions.

2. Namespace Declaration:

```cpp using namespace std; ```

• This line allows the code to use symbols from the `std` namespace without explicitly qualifying them.

3. Input Validation Functions:

• The code defines three functions to validate user inputs:
• `validDoubleRange`: Validates if a double value is within a specified range.
• `validDoublePositive`: Validates if a double value is positive.
• `validIntSeries`: Validates if an integer value is one of the valid values from an array.

4. Payment Calculation Function:

```cpp double paymentCalculator(double principal, double monthly_interest_rate, int num_payments) { return principal * (monthly_interest_rate * pow(1 + monthly_interest_rate, num_payments)) / (pow(1 + monthly_interest_rate, num_payments) - 1); } ```

• This function calculates the monthly payment for a loan based on the principal amount, monthly interest rate, and the number of payments using the amortization formula.

5. Amortization Schedule Function:

```cpp void loanAmortizationSchedule(int current_period, int total_periods, double payment_amount, double monthly_interest_rate, double current_balance) { if (current_period > total_periods) { return; } double interest = current_balance * monthly_interest_rate; double principal = payment_amount - interest; double new_balance = current_balance - principal; // Adjust the last payment amount if necessary if (current_period == total_periods) { payment_amount = current_balance + interest; principal = current_balance; new_balance = 0; } cout << setw(8) << current_period << setw(10) << fixed << setprecision(2) << payment_amount << setw(10) << interest << setw(10) << principal << setw(12) << new_balance << endl; loanAmortizationSchedule(current_period + 1, total_periods, payment_amount, monthly_interest_rate, new_balance); } ```

This function recursively generates and prints the loan amortization schedule, including period number, payment amount, interest, principal, and remaining balance.

6. Main Function:

```cpp int main() { double principal; double annual_interest_rate; int loan_term; const int valid_loan_terms[] = {10, 15, 25, 40}; int num_valid_loan_terms = 4; cout << "Student Name -- Lab 1 - Recursion" << endl << endl; cout << "Loan Application Information and Amortization Schedule" << endl << endl; do { cout << "Principle: "; cin >> principal; } while (!validDoubleRange(principal, 50000, 100000)); do { cout << "Life of loan: "; cin >> loan_term; } while (!validIntSeries(loan_term, valid_loan_terms, num_valid_loan_terms)); do { cout << "Annual Interest Rate: "; cin >> annual_interest_rate; } while (!validDoublePositive(annual_interest_rate)); int num_payments = loan_term * 12; double monthly_interest_rate = (annual_interest_rate / 100) / 12; double monthly_payment = paymentCalculator(principal, monthly_interest_rate, num_payments); cout << "Monthly payment: " << fixed << setprecision(2) << monthly_payment << endl << endl; cout << " Payment Amount Interest Principal Balance" << endl; cout << setw(50) << setprecision(2) << principal << endl; loanAmortizationSchedule(1, num_payments, monthly_payment, monthly_interest_rate, principal); //system("pause"); return 0; } ```

• The main function handles the overall flow of the program, including user input, calculation, and output.

7. Variable Declarations:

• The main function declares variables for user inputs, such as `principal`, `annual_interest_rate`, and `loan_term`, as well as an array `valid_loan_terms` to specify valid loan terms.

8. User Input and Validation:

• The main function uses a series of do-while loops to obtain and validate user inputs for `principal`, `loan_term`, and `annual_interest_rate`.

9. Loan Calculation:

• The main function calculates the number of payments, monthly interest rate, and monthly payment amount using the `paymentCalculator` function.

10. Amortization Schedule Output:

• The main function prints the monthly payment and a header for the amortization schedule.
• It then calls `loanAmortizationSchedule` to generate and print the schedule.

11. Return Statement:

• The program returns 0 to indicate successful execution.

12. Commented Code:

• There's a commented-out line (`//system("pause");`) which is typically used to pause the console window, but it's commented in this code.

Conclusion

In conclusion, this guide has provided you with the knowledge and tools to develop a powerful loan amortization calculator and schedule generator in C++. By creating your own application, you not only gain a deeper understanding of financial principles but also obtain a valuable resource for managing loans. The user-friendly interface and insightful schedule generated by this program offer a practical solution for anyone seeking to estimate and track their loan payments over time, making financial planning more accessible and informed. Start your journey to financial empowerment today.